Cogent Communications Holdings, Inc. (NASDAQ: CCOI), a leading provider of internet and data transmission services, saw its stock plummet by 5.09% on November 7, 2024, after reporting disappointing third-quarter results.
The company's service revenue for the quarter was $257.2 million, a decrease of 6.6% compared to the same period last year. The decline was primarily attributed to lower office occupancy rates and fewer corporate customers amid the continued shift towards remote work.
Cogent's non-GAAP gross margin, a key profitability metric, fell to 37.4% in Q3 2024 from 40.2% in the previous quarter, reflecting the pressure on its margins. The company reported a net loss of $63.1 million, or $1.33 per share, compared to a net loss of $56.7 million, or $1.20 per share, in the same quarter last year.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.